TradingKey - On July 15 Eastern Time, in US pre-market trading, the three major stock index futures edged higher as the market extended the optimism following yesterday's CPI data cooling more than expected. As of press time, Nasdaq 100 Index futures rose 0.44%, S&P 500 Index futures rose 0.13%, and Dow Jones Index futures rose 0.01%.
[Source: CME Group]
In commodities, international oil prices continued to rise, with WTI crude futures trading at $79.53/barrel and Brent crude futures at $84.88/barrel. Gold and silver prices fell slightly, with spot gold ( XAUUSD) trading around $4036/ounce; spot silver ( XAGUSD) trading around $58.12/ounce.
In the crypto market, Bitcoin briefly topped the $65,000 mark and is currently trading around $64,732; Ethereum rose in tandem, currently trading around $1884.
Market Movers
The memory chip sector is under pressure premarket. As of press time, SK Hynix ( SKHY) fell over 6%, SanDisk ( SNDK) fell 2.38%, Micron Technology ( MU) fell 0.86%.
SpaceX ( SPCX) rose 0.67% premarket. Starship's 13th test flight is scheduled for tomorrow, with the market focusing on the catalytic effect of this mission on SpaceX's valuation. Raymond James analysts previously set a price target of $800 for SpaceX, believing that once Starship transitions from R&D into a repeatable operational cadence, its valuation logic will be redefined. SpaceX's stock price has recently hovered around $136, just a step away from its offering price of $135.
Market News
CPI cooling more than expected boosts market confidence. Yesterday's release of the June CPI showed a 0.4% MoM decline, while the MoM core CPI rate unexpectedly flatlined at zero, significantly weakening market expectations for the Federal Reserve to continue raising interest rates. Bets in the interest rate futures market on a July rate hike have fallen below 20%.
ASML ( ASML) Q2 results beat expectations across the board, Q3 net sales guidance raised. ASML's Q2 earnings report released today showed: net sales of €11.42 billion, operating profit of €4.58 billion, and EPS of €9.84, all beating market expectations. Net bookings reached €18.36 billion, which includes an €8 billion EUV lithography system order from SK Hynix. The company expects Q3 net sales to be between €11 billion and €12 billion, with a gross margin of approximately 54% to 56%, and Q3 net bookings to be between €14 billion and €16 billion. Boosted by the earnings report, ASML rose nearly 3% in premarket trading.
Intel ( INTC) to use next-generation ASML equipment to manufacture laptop chips. Intel announced that it will adopt ASML's next-generation High-NA EUV lithography equipment for laptop chip manufacturing, further advancing its Intel 18A process. This news further boosts the outlook for ASML's equipment demand.
PayPal ( PYPL) surged over 18% in premarket trading as Stripe and Advent jointly proposed a buyout offer exceeding $53 billion. According to people familiar with the matter, payments competitor Stripe and private equity firm Advent International have jointly made an acquisition proposal to PayPal, offering over $53 billion. PayPal's premarket stock price surged on the news; as of press time, PayPal was trading around $56 in premarket, up over 18%.
Major Events Preview
Eastern Time | Event |
July 15, 8:30 AM | US June PPI Data |
July 15 | Fed Chair Kevin Warsh testifies before the Senate Banking Committee |
July 16 | SpaceX Starship 13th test flight (first deployment of Starlink V3 satellites) |
ASML's Q2 results beat expectations across the board and the company raised guidance. This, coupled with Intel's adoption of its next-generation equipment and rumors of a PayPal acquisition, means today is packed with market catalysts. Short-term market sentiment is leaning positive, but the impact of IBM's earnings warning on the software sector is still being digested, and the divergence may continue. Fed Chair Kevin Warsh will testify before the Senate today, and the market will closely watch his latest remarks.
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